Britain is a nation of club members. From allotment societies to zoological clubs, we like joining in. But few clubs find the best home for their members’ subscriptions.

Many leave their money in high street bank accounts earning little or no interest. For example, Nationwide pays 0.01pc on a minimum of £50 in its instant-access Treasurers’ Trust account, which is aimed at clubs, societies and charities. Lloyds TSB pays no interest on its Treasurers’ account – but there are no charges either for not-for-profit organisations with a turnover of £50,000 or less. Other banks offer clubs and charities business accounts with lower tariffs than those charged to companies.

The real advantage of having your club’s account in your local high street bank is convenience. Such accounts are flexible and easy to access: that can be important if you have lots of subscriptions coming in.

But there are alternatives. Just like individuals, clubs and charities often need two accounts; one current account for day-to-day transactions and one savings account for long-term funds. And as with personal savings and current accounts, it pays to search out the best deals.

There are about 20 banks offering current accounts for charities, with most extending the accounts to clubs. However, several demand high minimum deposits, so they are no use for most small clubs. Many impose charges on the accounts; free banking, still available to personal customers, is rare.

Norwich & Peterborough offers free banking on its Business Gold account as long as the club or charity has an annual turnover of less than £100,000. No credit interest is paid.

Leeds Building Society’s CharityLine Cheque account pays 0.3pc on credit interest on a minimum of £100. A spokesman for the society said: “Many instant-access charity accounts have regular transactions which make the operational costs higher than a typical savings account for individuals.”

The Charities Aid Foundation’s bank has a Cash account that pays 0.1pc on credit balances on a minimum balance of £1,000 with no charges if your club doesn’t exceed 600 cheque transactions a year. A spokesman said the account was open to clubs as well as charities, adding: “Essentially, if it is a non-profit or social enterprise that has a charitable aim even if they are not a charity, they would be allowed to open a Cash account.”

Co-operative Bank’s Community Directplus gives charities, community groups and voluntary organisations free banking as long as they don’t have a turnover of more than £1m a year, do not deposit more than 5,000 cheques annually, or do not pay in more than £100,000. It pays interest on balances of more than £2,000, starting at 0.1pc. In addition, account holders can apply for up to £1,000 from a donation fund to support any special projects or fundraising activities.

Stuart Coe, the head of social banking at Co‑operative Bank, said: “Small clubs, community groups and charities play a vital role in our communities. As an organisation that acts in the interests of its members and their communities, we have a lot in common with this sector and believe they deserve our support. Our Community Directplus account offers such organisations free day-to-day banking and other benefits so their valuable funds are not swallowed up by avoidable bank charges.”

Sister banks Clydesdale and Yorkshire have two accounts, Business Choice Charities and Business Choice, both with no transaction fees if there are low transaction levels. Registered charities also earn 0.25pc interest on credit balances.

For savings, the choice is limited. Charlotte Nelson of Moneyfacts said: “Savings accounts aimed at trusts, clubs and charities tend to have lower interest rates than more standard accounts on the market. So it is vital that organisations shop around and check all terms and conditions to ensure they are getting the deal that best suits their needs.

“These types of account are not always readily available, so asking in branch is a must. Often these accounts have eligibility criteria, so organisations need to disclose all information required so they are more likely to get the account they want.”

Virgin Money’s instant-access Charity Deposit account pays 1.65pc on £1 or more and can be run by post or through branches. That rate is comparable with the best easy-access personal accounts. It is limited to registered charities – but many small clubs are part of charities.

A spokesman for Virgin Money said: “We launched our Charity account to provide a simple and accessible way for charitable organisations to manage their funds at a competitive interest rate, as the charity sector has been neglected by the majority of banks in the past.”

United Trust Bank has the top rate on three different notice accounts, ranging from 2.5pc on 12 months’ notice to 2.15pc for 60 days’ notice, all on a minimum of £5,000. William Dobbie of United Trust Bank said: “Our deposit account customers include charities, clubs and societies, all of which benefit from our competitive interest rates.”

-

Convenience can be just as important as chasing the best rates when it comes to finding a home for your club’s money.

The 9th Bexhill Beavers’ subscriptions, along with those of the 9th Bexhill Cubs and Scouts, are paid into a bank account the group has had since it was set up several years ago with its local branch of Barclays.

Beaver leader Kerry Cowles said: “Originally the bank was chosen because the parent teacher association of the local school, which was instrumental in setting up our group, banked there and was happy with the service.

“We’ve never thought about moving elsewhere because we’ve always been happy with it. It’s also nearby and part of the community just as we are – and that’s important to us.”

-

• Personal deposits are covered by the Financial Services Compensation Scheme (FSCS) up to a limit of £85,000 – but it’s not always as simple for clubs and charities. Their deposits might be covered by the scheme, but this depends on how the organisation is constituted. Just being a registered charity isn’t enough. For example, a charity can be constituted as a limited company. In those circumstances, the eligibility test for cover by the FSCS would be the same as for a company.

• The FSCS said: “A limited company would be treated as having a claim, and therefore protection in its own right up to the limit, if it fell within the definition of a small company under the provisions of section 382 of the Companies Act 2006 if it fulfils two of the following three criteria: having fewer than 50 employees; having a turnover of no more than £6.5m; and having a balance sheet total of no more than £3.26m.” So as long as the club or charity is small, its deposits should be covered by the FSCS. But it’s worth checking with the bank holding your club’s cash.